Gm Will Miss Its $1 Billion Debt Payment, Stock Plummets

The Huffington Post News Editors, Huffington Post
Wed, 04/22/2009 - 11:23am

General Motors Corp. will not make a $1 billion debt payment due June 1, its CFO, Ray Young, told reporters on Wednesday. Instead, it is hoping to complete a debt-for-equity exchange or be forced to resort to bankruptcy. GM's stock plummeted on the news. Meanwhile, if Fiat doesn't complete its deal with Chrysler by the April 30 deadline, the Italian carmaker could pursue a deal with General Motors instead, according to Reuters. GM has a strong presence in Fiat's main markets of Europe and Latin America and already shares parts with the Italian group on models such as the Corsa and Grande Punto. "That (a deal with GM) would make sense," said SG Securities analyst Eric-Alain Michelis. In related news, Michigan's Attorney General, Mike Cox wants to make sure that should GM or Chrysler file for bankruptcy, that they do it in his state. According to the Detroit News: Cox sent letters today to GM president and CEO Fritz Henderson and Chrysler chairman and CEO Robert Nardelli requesting a meeting. "Any potential bankruptcy filing outside the State of Michigan seems bizarre," Cox wrote in the letters.

NEXT
Sections:  news   business   
RELATED ARTICLES
  • Ford shareholders reject stock proposal
    Ford Motor Co. shareholders are again rejecting a proposal to dilute the Ford family's control over the company. At its annual meeting in Wilmington, Del., Thursday, Ford said 67 percent of shareholders voted against the proposal to make each Ford share worth one vote. More
  • LinkedIn Shares Slide After Disappointing Outlook
    LinkedIn's surging share price cooled Friday as the social network projected slower revenue growth next quarter following a decision to lower the number of display ads that the website shows. More
  • Stocks surge to new highs after hiring climbs
    A big gain in the job market is lifting the stock market to new milestones. The Dow Jones industrial average crossed 15,000 for the first time early Friday, and the Standard and Poor's 500 index, a broader market measure, broke through 1,600 for the first time. More
  • Google searches predict market moves
    As the search volume on generic terms such as "debt", "portfolio" and "stocks" fell, the Dow Jones average tended to go up - and vice versa. An investment strategy based on these search volume data between 2004 and 2011 would have made a profit of 326%. More
  • AP Source: Fiat mulls IPO after buying Chrysler
    The head of Italian automaker Fiat is considering a plan to hold a public stock offering after the company buys 100 percent of Chrysler, according to a person briefed on the matter. More
BING NEWS:
  • This Incredible Company Has Already Created 1 Billionaire. Is the Stock a No-Brainer Buy Now?
    Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium ...
    04/27/2024 - 12:00 am | View Link
  • AMC Stock: Lenders Push for AMC Debt Extension
    While AMC Entertainment may be negotiating its debt payments, AMC stock still faces the broader box office conundrum.More From InvestorPlace The #1 AI Investment Might Be This Company You’ve Never ...
    04/26/2024 - 11:32 am | View Link
  • Germany to Take On Additional €8 Billion in Net Debt in 2025
    Germany’s federal government will have more borrowing leeway next year and net new debt will be about €24 billion ($25.8 billion) instead of the €16 billion the finance ministry projected in July, ...
    04/26/2024 - 12:02 am | View Link
  • GM Q1 2024 Earnings: Nearly $3 Billion In Income On $43 Billion Revenue
    GM’s 2024 financial guidance includes anticipated capital spending of $10.5 billion – $11.5 billion, inclusive of investments in the company’s battery cell manufacturing joint ventures.
    04/23/2024 - 1:00 pm | View Link
  • GM Releases 2024 First-Quarter Results and Raises Full-Year Guidance
    General Motors Co. (NYSE: GM) today reported first-quarter 2024 revenue of $43.0 billion, net income attributable to stockholders of $3.0 billion and EBIT-adjusted of $3.9 billion.
    04/22/2024 - 11:31 pm | View Link
  • More

 

Comment On This Story

NEXT
Welcome to Wopular!

Welcome to Wopular

Wopular is an online newspaper rack, giving you a summary view of the top headlines from the top news sites.

Senh Duong (Founder)
Wopular, MWB, RottenTomatoes

Subscribe to Wopular's RSS Fan Wopular on Facebook Follow Wopular on Twitter Follow Wopular on Google Plus

MoviesWithButter : Our Sister Site

Movies With Butter More Movie News

More Business News